The Table Shows a Consumption Schedule

question 70

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Disposable Income } & \text { Consumption } \\\hline \$ 300 & \$ 310 \\\hline 350 & 340 \\\hline 400 & 370 \\\hline 450 & 400 \\\hline 500 & 430 \\\hline\end{array}$$ The table shows a consumption schedule. If disposable income is $550, we would expect consumption to be

• A) $430.
• B) $450.
• C) $460.
• D) $470.

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford at given prices within his or her budget.

Budget Line

A visual depiction of every potential combination of two goods or services that can be acquired within a specified budget.

Money Income

Money income denotes the total amount of cash or cash-equivalents received by an individual or household over a certain period, from various sources such as wages, investments, and transfers.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget, given the prices of the goods.